NFIB Economist Rejects Sequester Scare Tactics | Your Bottom Line
The sky isn’t falling even if the sequester kicks in March 1, says NFIB’s chief economist Bill Dunkelberg. “The federal government spends $3.7 trillion per year. Much of this is off limits for [the sequester], so these cuts apply only to about $1.3 trillion of discretionary spending,” he said on Your Bottom Line With Bill Dunkelberg.
The $82 billion dollars in cuts amounts to a rounding error in the annual budget. And while Dunkelberg said these cuts would slow the economy some, it won’t be nearly as harmful as the 2% increase in Social Security taxes that went into effect on January 1. Dunkelberg pointed out that in Washington "cuts" are really increases that are simply smaller than the increases the politicians wanted. “If the sequester holds, we will actually cut spending - something unheard of in recent history. Still, the cuts will occur from new high levels of spending under President Obama,” Dunkelberg said. 3:02
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